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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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My accountant wrongly advised me I was non resident in the

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My accountant wrongly advised me I was non resident in the UK for tax purposes. I subsequently re-claimed the tax. Now I have refund the HMRC with substantial penalties and interest, as they found I was in fact resident. Have I a case against my accountant?
Hello my name is ***** ***** I will help you with this.
Would you have been liable for tax in any event please?
Customer: replied 2 years ago.

I was working for a UK company paying UK tax through PAYE. The work was in Holland and I was living in Spain. I did not have 180 days in any one country, and less than 90 days in the UK. I re-claimed tax for years 2011/12 & 2012/13. HMRC are saying I did not cut all ties with the UK as I had a property where my wife lived and still had doctors dentists etc. so therefore, after a lot of deliberation, they want the tax refunded to them. They have also added penalties and interest. Interest I can live with, but penalties are partly due to the lack of communication and co-operation from my accountant. My accountant was working on the outdated system of days in the UK.

How much in interest or penalties do you owe?
Exclude the tax but just the shortfall.
Customer: replied 2 years ago.

Hi Alex, Sorry, my name is Ray.

I am waiting for the follow up notification of penalties and interest, after they sent me the tax due statement. However, the HMRC have informed me penalties will be 17.5 % one year and 15% for the other. I estimate the final amount plus interest will be around £13-15000

Ok. You have a claim for the penalties and interest but NOT the tax. This is because you would have needed to pay the tax anyway. But the accountant is in breach of contract as he/she has failed to act with all reasonable skill and care.
This means you can sue for any losses arising. This is the interest and penalties.
Can I clarify anything for you about this today please?
Customer: replied 2 years ago.

Ok, thanks. When he submitted the two tax returns, he asked me to sign a document saying I agreed with his advice. I wouldn't not sign in reality. Would this affect any possible court action? How do I proceed to sue him?

This does not effect him.
You can sue:
Does that help?
Customer: replied 2 years ago.

Sorry, I do not understand you reply " This does not effect him" Do you mean it would not affect my case?

Sorry I meant this does not affect your claim against him.
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